A blog which is dedicated to the use of Traditional (Aristotelian/Thomistic) moral reasoning in the analysis of current
events. Readers are challenged to reject the Hegelian Dialectic and
go beyond the customary Left/Right, Liberal/Conservative One--Dimensional Divide.
This site is not-for-profit. The information contained here-in is for educational and personal enrichment purposes only. Please generously share all material with others.
--Dr. J. P. Hubert

Monday, July 25, 2011

The Real Crime: Concentration of Power

By Ralph Gomory

July 21, 2011 "Huffington Post" --- We are missing the lesson of the current British outrage over Murdoch just as we missed the lesson of the financial crisis in America.

Was the real crime in England that employees of the News of the World illegally hacked the cell phone of a missing girl? Was the real financial crime in America illegal acts such as Ponzi schemes or insider trading? The answer is no in both cases.

The real crime in England was legal, not illegal; it was that one man had the power to influence large parts of the British parliament and was credited with a major influence in electing whichever government he favored. No one in government dared to cross him until an emotion-provoking illegal act unleashed a public outcry. That outcry has, at least temporarily, liberated the members of Parliament from their fear of being smeared by Murdoch's newspapers if they dared to be hostile to his interests or beliefs.

Was the real crime in America illegal acts? No. Despite the press devoted to Madoff, the real crime, here as in England, was legal. Selling subprime mortgages to people who could never pay them back was legal. Rating agencies certifying to the high quality of the resulting worthless securities was legal. The whole web of interacting CDO's was legal. It was the legal, though strongly unethical, actions of a powerful Wall Street dedicated to self-enrichment at any price that brought down the U.S. economy. And, though we are still far from recovering from that disaster, the power of money has prevented any fundamental reform of the financial sector.

In both countries, the real crime is the concentration of power that allows these things to happen.How Power is Used

Power can be exerted through both the stick and the carrot. In England, members of Parliament feared being smeared in the powerful Murdoch newspapers, and they also knew that if they accommodated his views or interests, they could profit from his support.

In the United States, members of Congress understand that Wall Street money and corporate money can either be used to defeat them or to support their campaigns. They also know that if they are sufficiently influential in the right direction, lobbying jobs that are far more financially rewarding than their present occupation await them when they retire from Congress

Money can extend its power to other parts of government, too. In England, part of the police force became a Murdoch ally in ferreting out more news about important stories. In America, regulatory bodies, established to protect the public interest, become blind to risky behavior and kind to the industry. And these examples are some entries in a long list of possibilities.

The Tyranny of Government

It has been common throughout history for the concentration of power to be in governments, often but not always monarchies or dictatorships, and for the leaders of such governments to act to enrich themselves and their friends. In the years preceding the American Revolution, the British government's restrictions on colonial manufacturing, the Navigation Acts, the tax on stamps, and the tax on tea, brought revenue to the British Crown and profits to British merchants and manufacturers at the expense of the colonies, but also produced a revolution. This tyranny by governments is the type of oppression which the Tea Party is constantly reminding us of, but today's tyranny is of a different type.

The Tyranny of Wealth

The problem today is not the tyranny of government, but rather the concentration of money, and hence power, in Wall Street and in the largest corporations. And it is clear that enough money can buy political power.

Both Wall Street and the major corporations have added to their strong direct effect on the economy a decisive effect on the actions of governmental bodies. It is their influence on the federal government that caused the regulatory bodies to stand back from regulation and encouraged the excesses of the financial sector in the years leading up to the crash. It was the federal government, led by Wall Street alumni, that rescued the financial institutions so that they are now posting record profits despite having impoverished the nation. It was the overwhelming lobbying power of the financial sector that prevented the passage of meaningful financial reform. The banks that were too big to fail are, with the concurrence of both political parties, now bigger than ever. And the actions of the U.S. Supreme Court, permitting the unrestricted use of corporate and Wall Street money for campaigns, are adding to this effect.

The declared goal of most major U.S. corporations today is to make their stock as valuable as possible. As more than two-thirds of all stock is held by the wealthiest five percent in the country, this corporate goal amounts in practice to simply making the wealthy wealthier and increasing the extreme concentration of wealth and power that already exists in America today. And if making the stock as valuable as possible means sending jobs and technology abroad, while holding down wages at home, so be it.

Yet it is to this same corporate leadership that the government turns for policy advice on how to create jobs and revive the economy.

Today

Today we have a concentration of wealth unmatched since the days immediately preceding the Great Depression in 1929. This wealth and power, concentrated in Wall Street and in the major corporations, is being used for the enrichment of the already wealthy. Unfortunately, that enrichment is one that does not raise all boats. As statistics clearly show, the big boats are rising rapidly and the small boats are not doing well.

After the Great Depression, the U.S. government acted to lessen the power of concentrated wealth. It separated commercial from investment banking, insured bank deposits, enacted social security, and facilitated unions as a counter-force to corporations. It even became to some extent the employer of last resort.

But the power of wealth today over both political parties is now such that new government actions are mainly words that cover real inaction, and even that limited action is often described as the actions of a too large and too powerful government.

Today, the threat of tyranny comes not from the government, but from the concentration of wealth and power outside government, and from the influence on government of that great concentration of wealth and power.

Key Components of Each Moral Act

all "3" must be licit in order for the moral act to be permissible (just).

The reigning (immoral) philosophy in the so-called "developed West" is Utilitarianism in which the "ends" desired dictate the use of any "means" available in the accomplishment of a given goal i.e. "the ends justify the means." This by the way was the calculus the Nazi's embraced!

The Nature of Morality as Philosophy

Perhaps the best way to conceptualize traditional morality is to view it as a systematic way of answering questions which ask what "ought" to be done from the perspective of right and wrong. Moral philosophy assumes therefore that notions of right and wrong, good and evil are real that is; exist, both independent of the "knower" and irrespective of time and place.

Furthermore, it claims that these moral absolutes or immutable moral norms are understandable that is, knowable by rational man as part of the natural (moral) law.

From a scholastic (Aristotelian/Thomistic) perspective "ought" questions always involve "3" elements; the object rationally chosen or proximate end, also referred to as means" the intent or further end and the circumstances.

In scholastic moral philosophy what ought to be done is strongly grounded in the nature of being that is to say the "ought" is based on the "is." From a practical perspective this means that the ought is circumscribed by the immutability of human nature that is, bounded by a fixed human anthropology. The essence of our human being then is presumed to be unchanging not evolving and is not relative to time or place. The Enlightenment needless to say wrecked havoc with this principle especially the post-Enlightenment philosophy of Utilitarianism and the post-modern tendencies toward subjectivism and moral relativism.

Finally, most decisions of any consequence made by individuals or groups have at least a moral component even if they are not primarily or fundamentally moral questions. For example, questions of public policy always involve morality since they of necessity ask what "ought" to be done--from the perspective of right and wrong--whether explicit or implied. Whenever we ask what ought we to do, not simply what can we do or is it possible to do; we have entered the realm of moral philosophy.

This site attempts to analyze current events from a moral perspective utilizing scholastic, specifically; Aristotelian/Thomistic moral reasoning.

Neomodernism Rejected

Much of Modern Philosophy Undermines the Genuine Goal of Humanity

NEO-MODERNISM: The Scourge of Western Culture

Noteworthy Quotes

"We have never had a free press. We have deluded ourselves. In the West we now have privatized censorship. There are hundreds of examples."

--Julian Assange

"Capitol Hill is Israeli Occupied Territory."

--Patrick J. Buchanan 6/15/90

“What George Orwell wrote about in 1984 has come true. What Eisenhower warned us about concerning the ‘military-industrial complex’ has come true...War is a permanent feature of our societal landscape, so much so that no one notices it anymore.”

Why do we spend so much on war when we supposedly can’t find the money to help the unemployed?”

--Former Congressman Alan Grayson

"War is a racket. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives."

--Major General Smedley Butler

"It's time to rid the world of Nuclear Weapons"

--Desmond Tutu

"Every human being has by virtue of their humanity a claim on the right to life, shelter, sustinance, work, and medical care since they all represent "goods" the absence of which prevent the full realization of each person's humanity."

--Dr. John P. Hubert

"And so, my fellow Americans, ask not what your country can do for you; ask what you can do for your country."

--John F. Kennedy Inaugural Address

"Millions of people understand that both the Democrats and Republicans will not represent their interests in Congress."

Disagree with what you read on this site? Send a non-polemical letter herefor publication consideration. All letters /e-mailreceived will be considered for publication in whole or in part unless explicitly stating not for publication.

Readers who wish to communicate with the author may send an e-mail here .If you find this site enlightening, please tell a friend or attach the web site url to your e-mail distribution list. If you prefer, click on the message envelope provided; located below each post.

Information

To Search this site see "Search Blog" at the very top (left) of your screen and enter appropriate search word or phrase.

To see more on a particular post's topic click the"Labels" just below each post.